The Online Shopping Trends Survey also said that lower prices and convenience are the other factors that encourage online shopping.

"Ninety-five percent of the online shoppers covered agreed that they were attracted to cashback concept ... 27 percent said it was cashback and deals because of lucrative savings coming through," the survey report revealed.

Twenty-five per cent respondents said lower prices attracted them while 22 per cent said convenience was a key encouraging factor to shop online, it added.

The survey covered over 3,200 online shoppers and fans of Cashkaro to understand Indian shopper's behaviour. Sixteen percent of the respondents chose variety of choices whereas 10 percent preferred to shop online for the Easy Returns Policy of online retailers, the survey said.

More than 40 percent of the respondents said they spend Rs 10,000 on an average each year and close to 10 percent shoppers spend upwards of Rs 50,000 online, it added.

While, 30 percent respondents said price was the most important criteria when they shop online, quality of Product was an important point with 29 percent.

"With this survey, our belief that India is price sensitive, has been proved again and Indians are now realizing the potential of Cashback and Coupons a lot more," Cashkaro founder Rohan Bhargava said.

India's e-commerce market projected to grow manifold in future with improving Internet infrastructure, it will become easier for the country's nearly 200 million online population to shop on–the-go, he added.

According to industry body IAMAI, the e-commerce market grew by 33 percent to Rs 62,967 crore in 2013 and is expected to see a further rise over the next five years.